This Month in Real Estate - Sept 2011


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This Month in Real Estate, September 2001, is brought to you by Paul W. Drury, Real Estate Broker with Keller Williams Realty Greater Cleveland West. It is a collection of national news, information, and statistics as well as information specific to the North Central Ohio Region between Lakewood and Sandusky and south to the Lodi / Ashland Area.

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This Month in Real Estate - Sept 2011

  1. 1. Commentary 2 Released: The Numbers That Drive Real Estate 3September 2011 Topics for Home Buyers, Sellers, and Owners 8Brought to you by:KW Research
  2. 2. Commentary The U.S. housing market has shown notable stability in 2011 compared to the previous two years when the tax credit made a clear impact. Although recent economic indicators have been less than expected, including a downward revision of GDP and consumer confidence p , g that mirrors early 2009, owning a home is still valued by the majority of Americans. 72% of renters say owning is a top priority for their future, up from 68% a year earlier. However, most aspiring homeowners are held back by two main factors: funds for a down payment (82%) and confidence in their job security (80%). Federal Reserve Chair Ben Bernanke emphasized the importance of a healthy housing market to a robust recovery. He stressed the adverse effects of tighter credit conditions for borrowers, urging Congress to borrowers take tax and policy measures to help stabilize the market. He also noted the significance of addressing long-term fiscal policies including debt levels, upcoming expenses to support an aging population, and taxes. Buyers continue to benefit from historically favorable buying conditions, and sellers are encouraged by increased market stability. Although the Fed made a commitment to keep its interest rate at the current level until mid-2013, mortgage rates can, and often do, still fluctuate. In the midst of these reports, it is important to keep in mind the path to recovery was always expected to be a long and uneven road. As we progress toward a stronger recovery, recovery economic improvement typically spurs rising interest rates in order to keep inflation in line.Sources: National Association of Realtors, Bloomberg, The Wall Street Journal KW Research 2
  3. 3. Home Sales 4 The Numbers That Home Price 5 Drive Real Estate Supply of Inventory Mortgage Rates g g 6 7Brought to you by:KW Research
  4. 4. Home Sales In MillionsHome sales in July were up by 21% from the same month last year when the expiration of thetax credit resulted in a significant drop in sales. However, they were down 3.5% compared toJune. This could be due in part to NAR’s report that 16% of members experienced a contractfailure from issues in underwriting and appraisals during July. NAR President Ron Phippsstates, “For both mortgage credit and home appraisals, there’s been a parallel pendulum swingfrom very loose standards which led to the housing boom to unnecessarily restrictive practices standards, boom,as an overreaction to the housing correction.” Original Tax Credit Scheduled to Expire Expanded Tax C dit T Credit ExpiredLatest Data Release: August 18, 2011Source: National Association of Realtors KW Research 4
  5. 5. Home Price In ThousandsHome prices dipped by less than 1% in July with median home price at $174,000. This is 4.5%below the year-ago level which followed a strong spring season of sales driven by the taxcredit. Median home prices remain close to 2002–2003 levels. Distressed sales continue tocount for almost 1 in 3 homes sold. The combination of low prices and record-breaking lowinterest rates means that home affordability is extremely favorable.Latest Data Release: August 18, 2011Source: National Association of Realtors KW Research 5
  6. 6. Supply of Inventory In Months The supply of homes measured in months on the market at their current pace of sales was up slightly during July compared to June This is in keeping with historical trends June. trends, which show that inventory levels typically rise during the summer months. The month’s supply remained 25% below the peak of 12.5 months in July 2010 and 13% above April of 2010 when the home buyer tax credit was in full swing. Tax Credit ExpiredLatest Data Release: August 18, 2011Source: National Association of Realtors KW Research 6
  7. 7. Mortgage Rates 30 Year 30-Year Fixed Mortgage rates hit a new record low in August of 4.15%, primarily due to uncertainty in the global and domestic economies. While these incredible rates represent a significant savings for home buyers, experts note that for the benefits to be fully realized, lending conditions must loosen to enable more buyers to take advantage of them. As overall economic activity gets back on track, rates will likely rise to keep inflation in check. In other words, the window of opportunity for buyers to lock in these historically l f t it f b t l k i th hi t i ll low i tinterest rates will not l t f t t ill t last forever. Type Rate 30-Year Fixed 4.22% 15-Year Fixed 5 ea ed 3 39% 3.39% 5/1 ARM 2.96% Historical Average 8.90%Source: Freddie Mac; September 1, 2011 KW Research 7
  8. 8. Topics for Home Buyers, Sellers, p y , , and OwnersBrought to you by:KW Research
  9. 9. Home Updates As the weather gets cooler, some homeowners could be considering undertaking home renovations or updates before the holiday season. Here are a few findings about updates and home sales: •Homeowners typically spend considerably more on updates to their home when planning to live in and enjoy it with an average of nearly $9 000 it, $9,000. •In contrast, they only spend an average of $3,400 when making updates in preparation to sell. •The most common updates sellers performed before listing were paint, flooring, and light fixtures. •Although the majority of buyers were least likely to compromise on the location, 16% were least likely to compromise on updates. •75% of homes sold were either f % f fairly updated or very updated. •Sellers began repairing their home 1 to 8 weeks in advance of listing.Source: KW Research KW Research 9
  10. 10. National Stats – Existing Home Sales g KW Research 10
  11. 11. National Stats – Unemployment Rate p y KW Research 11
  12. 12. National Stats – Consumer Confidence KW Research 12
  13. 13. National Stats – Consumer Borrowing g KW Research 13
  14. 14. National Stats – Regulator Hiring Boom g g KW Research 14
  15. 15. National Stats – Construction Spending p g KW Research 15
  16. 16. National Stats – Housing Supply g pp y KW Research 16
  17. 17. National Stats – Housing Starts g KW Research 17
  18. 18. National Stats – New Home Sales KW Research 18
  19. 19. Your Local MarketAlthough it i iAlth h is important t stay i f t t to t informed about what i going on i th d b t h t is i in thenational economy and housing market, many different factors impact theyour real estate market.Talk to Paul W. Drury for assistance interpreting the conditions in the NorthCentral Ohio Regional market. The following graphs are general and coversome of the broader market area he serves. For detailed information aboutyour own neighborhood, call him or send him an email today.KW associates are equipped with the knowledge and information to helpyou navigate the home-buying or selling process in this challengingmarket. k t KW Research 19
  20. 20. Your Local Real Estate MarketYour Local Real Estate Market KW Research 20
  21. 21. Local Market Absorption Rate KW Research 21
  22. 22. Number of Homes “in play” KW Research 22
  23. 23. Avg Price p sq ft g per q KW Research 23
  24. 24. Sold to List Price Comparison p KW Research 24
  25. 25. Avg Price For Sale VS Sold KW Research 25
  26. 26. Investors & Shoppers – Foreclosure Watch pp NORTH CENTRAL OHIO REAL ESTATE OPPORTUNITIES!Investors• Are you shopping for the deal of a century for your new home?• Are you in the market to buy a home at a steep discount and try and fix it up and  “flip it”?• AAre you looking for a home for someone else? l ki f h f l ?• Find your next opportunity in our updated foreclosed homes list  (• The link is also available on http://www communityohio com/realestate php The link is also available on• Want to know what is happening in your marketplace? Want to know what is happening in your marketplace?• Looking to watch a particular city or neighborhood? Check out our Foreclosure  Map (• Send Paul an email today and request free market and location updates at l@d l• Call Paul directly at 440‐385‐5650.• No cost. No commitments. No obligations. No fuss. No drama. No kidding. N t N it t N bli ti N f N d N kiddi KW Research 26
  27. 27. About Keller Williams RealtyFounded in 1983, Keller Williams Realty is an international real estate companywith more than 80,000 associates and 686 offices across th U it d St t and ith th 80 000 i t d ffi the United States dCanada. The company began franchising in 1991 and, after years of phenomenalgrowth and success, became the second-largest U.S. residential real estate firmin 2010.Keller Williams Realty has succeeded by treating its associates as partners andsharing its knowledge, p g g policy control, and company p y p y profits on a systemwide basis. yBy focusing on helping associates realize their fullest potential, Keller WilliamsRealty is known as an industry leader for its family culture, unmatched education,profit sharingprofit-sharing business model, phenomenal coaching programs and technology model programs,offerings. KW Research 27
  28. 28. About Paul W. Drury y• Originally licensed as an agent in Ohio in 1986, Paul began with  Lehman Johnson Real Estate in Elyria. He acquired his Real Estate  Lehman Johnson Real Estate in Elyria He acquired his Real Estate Brokerage License in 1992 and became an Associate broker with West  Shore Realty. In 1995 he moved his brokerage license to Continental  Realty Investment where he began to focus on additional work with  Realty Investment where he began to focus on additional work with commercial and investment real estate. During these years he also  performed professional appraisals with The Appraisal House.• In 2001 he began Drury Realty Consulting and worked as an  independent Real Estate Consultant and worked on his own until 2009  when he joined Keller Williams Realty, Greater Cleveland West.  Being  when he joined Keller Williams Realty Greater Cleveland West “Being a part of the Keller family provides me with tools and serves  unachievable strictly on my own, provides me with the tools and  networking of a huge national network, while still enabling me to work,  networking of a huge national network while still enabling me to work act, and function as the manager of my own business. It’s the best of  both worlds.” – Paul• Pauls Home Page ‐ KW Research 28
  29. 29. What we have to offer sellers• Sellers now have access to tools unimaginable just a few  years earlier. Keller Williams Realty doesn t spend valuable  years earlier Keller Williams Realty doesn’t spend valuable resources promoting its own name. Instead it puts  resources into the best tools and resources for education  and training, providing the highest quality real estate  professionals into local communities.• Properties put up for sale by Paul are also listed in KWLS a Properties put up for sale by Paul are also listed in KWLS, a  national MLS, implemented by Keller Williams, now the  2nd largest company in the US; local MLS; NEOHREX  (Northern Ohio Real Estate Exchange); and on national  sites such as Trulia, Zillow, CyberHomes, and others.• Free Real Estate Informational Webinars available by Free Real Estate Informational Webinars available by  logging onto this link… KW Research 29
  30. 30. What we have to offer sellers ( Cont’d)• Other tools brought to bear by Paul include  branding using unique web addresses with a  b di i i b dd ith virtual tour that can be emailed or the link can  posted anywhere, to include Craig s List and Back  posted anywhere to include Craig’s List and Back Page.   – p gp y g p p –• Not Planning to sell in the near future?  – Would you still like to monitor what is happening in  your neighborhood or area? your neighborhood or area? – Contact Paul now for a free periodic market update. No  cost. No obligation. cost. No obligation. KW Research 30
  31. 31. Properties currently for sale ope t es cu e t y o sa e• Premium residential properties currently for sale: – 13951 Di 13951 Diagonal Road in Lagrange – lR di L – 19593 Whitehead Road in Wellington ‐ – See for a complete• Would you like to see one of these homes? Click on the link for a  visual tour.• Check out our YouTube Channel at• Would you like your home or property promoted like these? – Contact Paul for a free, no obligation, consultation today at 440‐ , g , y 385‐5650. KW Research 31
  32. 32. What we have to offer buyers y• Buyers of Real Estate also have access to tools  unimaginable just a few years before. Since Keller Williams  unimaginable just a few years before Since Keller Williams doesn’t spend its money promoting its own name, it puts  its resources into providing the best tools and resources to  its systems, education, and training, thus providing the  most professional real estate team members back into the  communities.• Free Real Estate Informational Webinars available by  y logging onto this link…• If you wish to conduct your own Multiple Listing Home  Searches, you may do so using this link KW Research 32
  33. 33. What we have to offer buyers (Cont’d)• Buyers can access Paul’s website and conduct their own searches as well as create their own  and conduct their own searches as well as create their own search profiles for searching for properties anywhere in  Ohio. If relocating out of Ohio, Keller Williams offers one of  the finest relocation referral networks in the nation.  the finest relocation referral networks in the nation Greater Cleveland West now sells more properties than any  other office in the entire regional MLS.• Paul’s website is easy to manage and he can set up search  profiles for you so you get notified at about 8:30 am of any  new properties that come available. You can also see  new properties that come available You can also see profiles set up on national websites such as Trulia  providing for greater access to search tools.• Everything we have we also post with scores of discounts  p and product and service links on KW Research 33
  34. 34. Follow Paul’s Real Estate updates online… pHome Web Page On Twitter• • ‐ Zillow On FaceBook On FaceBook• • ‐ TruliaOn Trulia On LinkedIn On LinkedIn• • the Real Estate Global O th R l E t t Gl b l Free Real Estate Webinars Free Real Estate Webinars Network •• Drury Special Discounts LinksOn YouTube ••  www youtube com/user/MrPDrury KW Research 34
  35. 35. Social Networking on Facebook• F Facebook – “N th Central Ohi Real Estate b k “North C t l Ohio R l E t t Consulting, News, and Stats” • p p g Consulting-News-and-Stats/164210080283714• Facebook – “North Central Ohio Real Estate Investments” • g Investments/145904528811383• Facebook – “Community Information, News, and Community Savings for Ohio” • and-Savings-for-Ohio/100692843343793 KW Research 35
  36. 36. Social Networking on Twitter• @PaulWDrury “North Central Ohio Real Estate Consulting” g • “”• @CommunityOhio • “htt //t itt “ ” /C it Ohi KW Research 36
  37. 37. Paul’s special vendor deals of the month… p Now advertising properties, features, and discounts on • • Featuring outstanding deals from the following vendors• • Franklin Covey Supplies• GoDaddy Domain Sale • Intuit Quickbooks• ESET Internet Security  • Executive Book  Software Summaries• NewEgg Electronics  • RubberMaid Products p Superstore • Build my Move Moving  y g• E‐fax Electronic Fax  Services Service • eBatts discount battery • TomTom GPS Poducts TomTom GPS Poducts services• DocuSign Electronic  • Bulb America Light Bulb  Document Service Supplier • Magazine Mall KW Research 37
  38. 38. The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed bylocal and national media, local real estate agents, and other expert sources. You should not treat any opinionexpressed in This Month in Real Estate as a specific inducement to make a particular investment or follow a particularstrategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsiblefor the accuracy or completeness of information, and provides said information without warranties of any kind. Allinformation presented herein is intended and should be used for educational purposes only. Nothing herein should beconstrued as investment advice. You should always conduct your own research and due diligence and obtainprofessional advice before making any investment decision. All investments involve some degree of risk Keller decision risk.Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in ThisMonth in Real Estate. KW Research 38